Identify the debt features
A convertible note generally includes principal, interest, and maturity. Common YC SAFEs do not have those loan features. The distinction matters if the expected next financing does not happen.
Compare the event mechanics
Read what happens at a financing, acquisition, dissolution, or maturity where applicable. A valuation cap alone does not explain the instrument’s overall effect.
Review the actual version
Forms and negotiated terms differ. Compare amendment rights, investor protections, and side letters before choosing a structure. This is legal education, not investment advice.
